Elliott Wave Analysis: EURUSD and the German DAX

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EURUSD

USD is regaining strength against the EUR and JPY as stocks turn sharply up in the last 24 hours. We see room for more gains on S&P500 and DAX, which means that the US currency can stay in uptrend. On the EURUSD chart, we expected new lows on EURUSD, which were achieved during Asian trading hours. We see a price action in black on wave 5, which could stay bearish all the way down to 1.0580 this week. In the meantime, any bounce should be short-term and should not move beyond the blue wave (ii).

EURUSD, 1H

eurusd 1 (4)

German DAX

German DAX keeps trading higher with an impulsive price action. We see index turning back towards 11053 as a decline from that high was made by three waves; thus a corrective move. That said, expect more gains after any pullback. The current price action is testing the trend line expected to be broken soon and may cause a rally up to 11000; temporary resistance for a black wave 3 as shown on the chart.

German DAX, 1H

dax 1 (3)

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About Author

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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